Using customer data to make savings and boost sales
Stuart Nicolle, managing director and founder of Purple Seven, explains how to turn raw customer and audience data into useful, practical information for marketing campaigns. Looking at segmentation of audiences by customer type and how recently and frequently visitors attend, and turning this theory into practice. (This article was first published in the AMA conference 2012 report).
When looking at segmentation we might want to consider whether it has these characteristics:
- It is possible to measure
- It has to be large enough to earn profit
- It has to be stable enough that it does not vanish after some time
- It is possible to reach potential customer via organisation’s promotion and distribution channel
- It is internally homogeneous (potential customers in the same segment prefer the same product qualities)
- It is externally heterogeneous; that is there is heterogeneity between segments (potential customers from different segments have basically different quality preferences)
- It responds similarly to a market stimulus
- It can be cost-efficiently reached by market intervention
- It is useful in deciding on marketing mix
To read the full article download Using customer data to make savings and boost sales.